Santander Launches A Blockchain-Based Foreign Exchange Service

Santander has
launched a foreign exchange service that uses blockchain technology to make
same-day international money transfers.

The service, called
Santander One Pay FX, uses tech developed by blockchain firm Ripple. Santander
said it is the first cross-border payments service using blockchain to be made
by a bank.

Blockchain, or
distributed ledger technology, is a decentralized network that records a
growing list of transactions. It was originally used as the technology to
underpin bitcoin but banks have become increasingly interested in other use
cases, like clearing and settling payments.

Santander's
blockchain-powered foreign exchange platform is currently live in four
different countries — Spain, the U.K., Brazil and Poland. A wider roll-out is
expected in coming months, the bank said.

Innoventures, a $200
million fintech, or financial technology, venture capital fund set up by
Santander, was one of a number of investors to participate in Ripple's first
round of funding in 2015.

Ripple has struck
partnerships with multiple banks and other financial institutions, including Santander. Banks are less keen to use the firm's
digital currency XRP, but earlier this year two money transfer firms, MoneyGram
and Western Union, announced projects involving the cryptocurrency.

On Wednesday,
Ripple invested $25 million in to a fund started by Blockchain
Capital, a venture capital firm dedicated to blockchain.